Yum's Top Exec Compensation at $9.1M
LOUISVILLE, Ky.
Board of Trade News, AP - 3 years ago
David Novak, chairman and chief executive of fast-food giant Yum Brands Inc., received compensation valued at $9.1 million last year, according to a regulatory filing Friday.
Novak, who became CEO in 2000 and assumed the chairmanship a year later, collected a salary of $1.2 million and $3.3 million in non-equity incentive plan compensation, which is a reward for the company's performance last year, according to the proxy statement filed with the Securities and Exchange Commission. His "other" compensation of $169,310 included more than $147,000 for personal use of company aircraft, insurance premiums and miscellaneous payments.
Novak also was awarded stock and options in 2006 that had an estimated value of $4.4 million on the day they were granted.
The Associated Press calculations of total pay include executives' salary, bonus, incentives, perks, above-market returns on deferred compensation and the estimated value of stock options and awards granted during the year. The calculations don't include changes in the present value of pension benefits and sometimes differ from the totals released by the companies.
Louisville-based Yum Brands is the parent of KFC, Pizza Hut, Taco Bell, Long John Silver's and A&W All-American Food Restaurants.
Yum spun off from PepsiCo in 1997.
Novak, 54, has been with the company for 20 years, holding a variety of executive positions. He was group president and chief executive officer of KFC and Pizza Hut from August 1996 to July 1997, when he became acting vice chairman of Yum. He has been the company's president since October 1997.
For 2006, Yum posted net income of $824 million, or $2.92 per share, up from $762 million, or $2.55 per share, the previous year. Total revenue grew 2 percent to $9.56 billion from $9.35 billion. Leading the growth has been Yum's burgeoning overseas business, especially in China.
In the fourth quarter, Yum's profits grew 3 percent as strong international sales offset a sluggish performance by Taco Bell amid an E. coli outbreak that sickened several dozen customers at some of its East Coast restaurant.
The E. coli outbreak caused more than 70 Taco Bell customers to become ill, primarily in New York, Pennsylvania and New Jersey. Federal officials said in December that the most likely source of the illnesses was lettuce. Taco Bell took precautionary measures by changing its suppliers of lettuce and cheese in New York, New Jersey, Pennsylvania and Delaware.
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